Hampshire Trust Bank backs Coventry regeneration with £16.3m development loan

By Bridging Loan Directory 9th September 2024

Hampshire Trust Bank (HTB) has delivered a £16.3m development loan facility as part of a build-to-rent development project, repurposing the landmark Sutherland House office building in Coventry into over 100 new homes.

Located near the bustling Foleshill Road and scenic Coventry Canal, the project will contribute to the regeneration of the local area, preserving local identity and representing a distinguishable landmark for both residents, and visitors.

Once complete, the development will consist of 57 one-bedroom apartments, 42 two-bedroom apartments and three studio apartments, alongside a reception area and residents lounge, as well as parking and bike storage facilities.

The project is being undertaken by experienced real estate development and investment firm MCR Property Group and will be retained and operated under the MCR Homes Brand, with work expected to be completed by early 2025.

This project represents a continuation of MCR Property Group’s strategic expansion into the build-to-rent sector, which has become an increasingly important part of the UK housing market.

As cities like Coventry continue to grow, the demand for flexible, high-quality rental housing is expected to rise, and MCR Property Group is well-positioned to meet this demand through projects like Sutherland House.

HTB provided a £16.3m residential development facility for the project, across a 15-month term. It has been structured at 65% of gross development value.

David Tracey, Chief Operating Officer, from MCR Property Group commented:

“We are delighted to partner with HTB on this ambitious and transformative project. Their expertise and deep understanding of the build-to-rent sector have been instrumental in realising our vision for Sutherland House.

As we convert this iconic building into a modern rental community, we are not only meeting the increasing demand for high-quality housing in Coventry but also playing a key role in the revitalisation of a significant area.

This development will deliver much-needed homes and make a lasting positive impact on the local community.”

Andrew Dignum, Lending Director, Development Finance at Hampshire Trust Bank, added:

“This is our first collaboration with MCR Property Group, marking the beginning of what we anticipate being a successful relationship.

Working with such a high-quality partner shows our drive and capability to lend within this growing subsector of the UK property market.”

Neil Leitch, Managing Director of development finance at Hampshire Trust Bank, added:

“We actively look for opportunities in the regional build-to-rent market, understanding the crucial role it plays in addressing the UK’s housing shortages.

This project not only breathes new life into a historic landmark but also contributes to the regeneration of Coventry, underscoring our dedication to supporting sustainable and impactful projects that benefit both residents and the wider community.”